Committed to high-end equipment fields such as aerospace, nuclear power, oil and gas, and resources. Starting with cast steel parts, Yingliu Co., Ltd. has now developed into a domestic leading company focusing on R&D, manufacturing and sales of core components for high-end equipment. Customers include more than 10 of the world's top 500 companies, including General Electric, Siemens, and Caterpillar, showing the company's strong competitiveness.

The “two-plane” business is actively developing. According to the company's semi-annual report, in the first half of 2023, the company focused on breaking through the gas turbine business in the aero engine business on the premise of maintaining its leading edge in the aviation engine business. The company continued to steadily supply superalloy blades for certain types of domestic engines; the company was one of the qualified suppliers from China, and the number of models and orders in hand increased further; the quality of aero engine chassis provided by the company to overseas customers was stable, and its market share increased rapidly.

“Nuclear power” is rising from the east. According to the company's semi-annual report, according to the “14th Five-Year Plan” and the forecast of the China Nuclear Energy Industry Association, China's nuclear power penetration rate will reach about 10% in 2035, and the pace of approval will continue; benefiting from the recovery of nuclear power unit approvals, the company released products such as nuclear grade pumps and valves, spent fuel shelves, and metal insulation layers during the reporting period, and nuclear radiation shielding materials became a new growth point.

The “low altitude” economic layout was earlier. According to the company's response on e-Interactive, the two turboshaft engines introduced by the company from Germany in 2016 have now been localized and trial production of the YL-WZ130 and YL-WZ190 turboshaft engines have begun. The layout is early and is expected to contribute to new growth.

Profit forecasting and investment advice. We expect the company's revenue for 23-25 years to be 2,434/29.28/3.433 billion yuan, and net profit for the same period is 3.16/4.32/551 million yuan. Referring to the valuation level of comparable companies, considering that the company's products are high-end, highly competitive in high-end product fields such as aerospace and nuclear industry, and have an early layout and strong competitiveness in the “low altitude economy”, we have given the company a PE valuation of 25x for 24 years. The corresponding reasonable value is 15.82 yuan/share, giving a “gain” rating.

Risk warning. The risk of macroeconomic uncertainty, the risk of exchange rate fluctuations, the risk of price fluctuations of major raw materials, etc.